Daijiworld Media Network - Indore
Indore, Jul 27: The Directorate of Enforcement (ED) has filed a comprehensive chargesheet exceeding 20,000 pages before the Special PMLA Court in Indore in connection with the Rs 103.42-crore Indore Municipal Corporation (IMC) fake bill scam, naming 32 accused, including contractors, civic officials, auditors and private individuals allegedly involved in laundering public funds.
The prosecution complaint, submitted by the ED's Indore Sub-Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, alleges that the accused worked in collusion to fraudulently siphon money from the municipal treasury by creating forged official documents and fake payment records.
According to the investigation, the money laundering probe was initiated on the basis of multiple FIRs registered at MG Road Police Station in Indore, which uncovered a large-scale fraud involving fabricated bills, forged work orders, fake measurement books, manipulated completion certificates, falsified note sheets and other forged municipal records.
Investigators found that many of the projects for which payments were claimed had either never been executed or had already been completed under legitimate work orders, yet fresh fraudulent claims were processed to secure payments from the civic body.
The ED alleged that contractor firms, acting in conspiracy with officials of the Indore Municipal Corporation and personnel from the Local Fund Audit and Resident Audit offices, systematically processed fake files to illegally withdraw around ?103.42 crore from the IMC treasury.
The agency said the illicit proceeds were subsequently withdrawn in cash and distributed among contractors, public officials and other beneficiaries. A portion of the funds was allegedly routed through related entities disguised as legitimate business transactions before being invested in movable and immovable assets or spent on personal expenses in an attempt to conceal their origin.
As part of the investigation, ED officials carried out searches at 20 locations on August 5 and 6, 2024, resulting in the seizure or freezing of assets worth nearly Rs 22.04 crore. These included cash, bank deposits, fixed deposits, demat accounts, mutual fund investments, along with documents and digital evidence considered crucial to the probe.
The agency later issued two provisional attachment orders under the PMLA, attaching 52 immovable properties valued at around Rs 37.14 crore. The attached assets include residential properties, commercial establishments, plots and agricultural land located in Madhya Pradesh and Uttar Pradesh.
With these actions, the total value of assets attached, seized or frozen during the investigation has reached approximately Rs 59.18 crore.
The ED also arrested three key accused, including the alleged mastermind Abhay Singh Rathore, along with Mohd Zakir and Rahul Badera, under Section 19 of the PMLA for their alleged roles in orchestrating the fraud and laundering the proceeds of crime.
The chargesheet was filed before the Special PMLA Court in Indore on July 24, with the ED seeking confiscation of all attached, seized and frozen assets allegedly linked to the money laundering operation.
The Special Court has taken cognisance of the complaint, issued summons to the accused and scheduled the matter for further proceedings.